"The Board of Regents goes into executive session in accordance with the provisions of AS 44.62.310 to discuss matters relating to litigation and land acquisition, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the University and personnel matters, this topic being a subject which might tend to damage the reputation or character of a person or persons. The session shall include members of the Board of Regents, President Komisar, Vice President and General Counsel Kauffman, and such other University staff members as the President may designate and shall last approximately 2 hour(s). Thus, the open session of the Board shall resume in this room at approximately 2:30 p.m. A.D.T. This motion is effective September 30, 1994."

The Board of Regents went into executive session at 12:30 p.m. and returned to public session at 3:20 p.m. at which time Regent Breeze announced that the Board of Regents had just concluded an executive session in accordance with AS 44.62.310 to discuss matters relating to litigation and land acquisition, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the University, and personnel matters, this topic being a subject which might tend to damage the reputation or character of a person or persons. The session included members of the Board of Regents, President Komisar, Vice President and General Counsel Kauffman and other University staff members designated by the President and lasted approximately 3 hours.

VI. Consent Agenda

Academic and Student Affairs Committee

The Academic and Student Affairs Committee made the following recommendations:

This item was removed from the consent agenda by Regent Stitham and will be considered at the December meeting.

B. Approval of Academic Degree Recipients

Regents' Policy 10.01.02 requires annual approval by the Board of Regents of degree and other formal awards conferred in the preceding academic year. An official listing of these awards was available for Regents' inspection at the meeting.

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve the list of degree recipients for the summer and fall of 1993 and the spring of 1994. This motion is effective September 29, 1994."

Finance, Facilities and Land Management Committee

The Finance, Facilities and Land Management Committee made the following recommendations:

A. University of Alaska Fairbanks Elvey II Addition - Approval of Schematic Design and Authority to Bid and Award a Contract

This item was removed from the consent agenda by Regent Henri and was considered under new business.

B. Loan to UA Technology Development Corporation

This item was considered under new business.

C. Adoption of Policy 05.01: Budget Development and Maintenance

MOTION

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents adopt the proposed Regents Policy 05.01 (Budget Development and Maintenance) as presented in Reference 1 of the September 16, 1994, Finance, Facilities and Land Management Committee meeting, as amended by the committee, and authorize the president to renumber affected policies as appropriate. This motion is effective September 16, 1994."

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents adopt the proposed Regents Policy 05.02 (Accounting and Fiscal Reporting) as presented in Reference 2 of the September 16, 1994, Finance, Facilities and Land Management Committee meeting, as amended by the committee, and authorize the president to renumber affected policies as appropriate. This motion is effective September 16, 1994."

Human Resources Committee

The Human Resources Committee made the following recommendations:

Adoption of Board of Regents Policy 04.06: Employee Relations

MOTION

"The Human Resources Committee recommends that the Board of Regents repeal existing Policy 04.03.06-04.03.07, 04.06.04, 04.08.03- 04.08.07, and adopt 04.06: Employee Relations as set forth in Reference 5 of the agenda for the September 1994 meeting of the Board of Regents. This motion is effective September 29, 1994."

Committee of the Whole

The Committee of the Whole made the following recommendations:

A. Approval of FY96 Operating Budget Request

The administration presented its recommendations regarding the FY96 operating budget.

MOTION

"The Committee of the Whole recommends that the Board of Regents adopt the FY96 operating budget request as presented in Reference 6. This motion is effective September 29, 1994."

B. Approval of FY96 Capital Budget Request

The administration presented its recommendations regarding the FY96 capital budget.

MOTION

"The Committee of the Whole recommends that the Board of Regents adopt the FY96 capital budget request as presented in Reference 7 and amended. This motion is effective September 29, 1994."

Regent Stitham moved to adopt the consent agenda as amended. Regent Kelly seconded the motion and it passed unanimously.

VII. New Business

A. Academic and Student Affairs Committee

Regent Stitham reported on the Academic and Student Affairs Committee's discussion of the proposed honorary degree and meritorious service award policy. She advised that the item would be brought to the Board for action in the near future.

Regent Stitham then addressed the student affairs unity report as presented to the committee. Included within the report was mention of Dr. Carla Kirts' presentation to the committee, especially as to the development of a common enrollment form, which is a result of the unity efforts of the student services personnel.

Regent Stitham also noted that the committee received a report from the Deans' Council on vocational programs. As a part of this portion of her report, she indicated that the Vocational Education Advisory Council has expressed a desire to meet with the full Board of Regents.

Mention was then made by the committee chair about the upcoming meeting of the Department of Education and the movement toward joint responsibility for the preparation of teachers in Alaska.

The report also indicated that during the committee meeting the enrollment report was distributed to the members. Specific mention was made of the fact that the University appears to be moving toward more full-time students. Currently UA is 41 percent full-time and 59 percent part-time throughout the system. One of the ramifications of this shift is that it will become more expensive to offer upper division courses.

In response to President Gagnon's request for guidance, Regent Stitham also reported on the committee's perspectives concerning the regulation and monitoring of travel by members of the Board.

Regent Stitham concluded he committee report by summarizing the committee's discussion in response to a proposal by Regent Otterbacher to not provide educational services to persons with convictions of violent crimes. Inasmuch as there are a number of significant ramifications to this issue concern that maybe the scope of the proposal should be broader than just sexual assaults, Regent Stitham advised that the question deserves further review and that the committee recommends that it be referred to the student services officers for their evaluation and recommendation.

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents request that the University student services officers in conjunction with the office of the general counsel consider issues relating to the denial of University educational services for non-academic reasons, such as violent assaults and other crimes of violence, and reports its recommendations to the Academic and Student Affairs Committee during the 1995 spring semester. This motion is effective September 30, 1994."

Regent Stitham also reported that the Academic and Student Affairs Committee expressed its desire to initiate a Regents award recognizing a University faculty member for excellence in teaching. Regent Stitham noted that the Board will seek funding external to current University funding to support the award. The Committee passed the following motion and Regents Forrer, Breeze and Stitham agreed to serve on a subcommittee to develop details of the process.

MOTION

"The Board of Regents declare its intention to development an award recognizing excellence in teaching at the University of Alaska. For the purpose of implementation, the Board will seek funding to support the award and develop the details of the award structure. This motion is effective September 30, 1994."

"The Board of Regents approves the recommendations of the Academic and Student Affairs Committee as stated above. This motion is effective September 30, 1994."

B. Finance, Facilities and Land Management Committee

University of Alaska Fairbanks Elvey II Addition - Approval of Schematic Design and Authority to Bid and Award a Contract

BACKGROUND

The University of Alaska Fairbanks Geophysical Institute currently occupies approximately 100,000 GSF in the C.T. Elvey Building. Additional space is necessary to accommodate the Geophysical Institute's current and projected program needs as the scientific programs continue to expand. It is anticipated that the relocation of Geophysical Institute programs into the Elvey II addition will subsequently release space in the existing Elvey Building for growing scientific programs.

CONSULTANT

The architectural consultants for this project are Kumin Associates, Inc., of Anchorage, Alaska in joint venture with KMD Architects of San Francisco, California. The Board of Regents approved the consultant selection in December 1992.

FUNDING

Funding for the Elvey Addition II construction will be secured from several sources. The University intends to sell bonds up to the maximum legal indebtedness of $1.0 million dollars per year. This is anticipated to provide $10.0 million dollars in new funding. The Geophysical Institute has applied for a grant from the National Science Foundation in the amount of $1.74 million dollars. A second request for $4.5 million dollars has been included in the capital request for State appropriation in FY96.

SUMMARY OF CONSTRUCTION FUNDING

Bond Sales $10,000,000

Capital Request FY96 $ 4,500,000

NSF Grant $ 1,740,000

TOTAL $16,240,000

Total project costs for Phase I of the Elvey II addition is estimated at $13,900,000. Phase II of the Elvey II addition, the full build-out with parking expansion, is estimated to cost an additional $4.6 million dollars and is to be awarded July 1995 by a separate bid.

SCHEDULE

Regents Approval To Bid & Award September 30, 1994

Bid Date March 30, 1995

Award Construction Contract for Phase I April 19, 1995

Potential Award of Phase II July 1995

Construction Complete December 30, 1996

MOTION

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents approve the schematic design for the University of Alaska Fairbanks Elvey II Addition project as presented. This motion is effective September 29, 1994."

Loan to UA Technology Development Corporation

The UA Technology Development Corporation (UATDC), a private, not-for-profit corporation, was created this year to assist the University in commercializing its intellectual property. Vice President Brian Rogers briefed the Board on progress of the Corporation, including its annual plan and budget. The University administration proposed licensing the University's patents to the Corporation and to loan the Corporation operating funds to bring University patents and other intellectual property to market, such loan to be repaid from patent royalties and related income. Vice President Brian Rogers outlined the terms of the proposed loan with the Corporation as follows and requested Board of Regents approval of a loan from the Land Grant Trust Fund Inflation-Proofing Fund.

Loan to UA Technology Development Corporation

What is Regents Policy on intellectual property?

UA will apply for patents and copyrights on intellectual property

UA will license intellectual property

Income from licenses split as follows: UA patent expenses are recovered first, then next $10,000 goes to inventor, then additional income is split 50% inventor, 50% UA

After 5 years, UATDC required to begin paying principal from net income

UATDC would pay license fees to UA, to be split with inventor

Loan would be unsecured and subject to high risk, but is preferable to UA expenditure on licensing program

What would be the loan terms?

UA would loan up to $165,000 for first-year (FY95) operations

UA would loan additional amounts, subject to Regent approval in June each year, for future year operations

UATDC would pay monthly interest at prime rate on unpaid balance

UATDC pays 50% of prior period net income for principal payments

UA would annually review UATDC plan of operations and budget as condition of continuing line of credit

UA Technology Development Corporation

Board of Directors:

Voting members:

Bob Williams, President

Merritt Helfferich, Executive Vice President

Grace Schaible, Treasurer

Joe Beedle, Secretary

Mitch Usibelli

Helen Atkinson

Ex-officio, non-voting members:

Two Regents, to be appointed by the President of the Board
of Regents

President of the University: Jerome Komisar

Vice President for Finance of the University: Brian Rogers

University Research Officer designated by President:
Jack Keating

FY95 Budget

(a) Through 9/30/94

Executive VP salary & benefits $ 4,212

Attorney fees 2,975

Organizing expenses 528

Conference expense 440

Director travel for meeting & conference 2,308

Subtotal $ 10,463

(b) Fixed costs 10/1/94-6/30/95

Executive VP salary & benefits $ 16,848

Director salary & benefits 43,230

Contract services (rent, administrative ass't,

insurance, equipment, phone, etc.) 39,925

Equipment (one-time only) 9,861

Subtotal $109,864

(c) Estimated variable costs 10/1/94-6/30/95

Note: Actual costs depend on licensing activity

Legal fees and patent attorneys $ 20,375

Telephone/long distance/data charges 2,938

Publications/graphics/mailing/conference fees 8,200

Director travel 8,990

Licensing activities travel 10,782

Contingency 13,388

Subtotal $ 64,673

Total $185,000

Less: Organizing contract from UA ( 20,000)

Net loan from UA $165,000

The Finance, Facilities and Land Management Committee passed the following motion:

MOTION

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents authorize the President to execute a loan agreement with the UA Technology Development Corporation as presented. This motion is effective September 29, 1994."

"The Board of Regents approves the recommendations of the Finance, Facilities and Land Management Committee as stated above. This motion is effective September 30, 1994."

C. Committee of the Whole

Recognition of Martin Luther King, Jr./Alaska Civil Rights Day

For some time the University has been considering the most appropriate manner by which to recognize the contributions of the late Martin Luther King, Jr. to our nation. After appropriate reflection, the Administration recommended that the third Monday of January be observed by the University community as Martin Luther King Jr./Alaska Civil Rights Day -- a day on which to reflect on the contributions of Dr. King to the liberties we share and to celebrate the civil rights of Alaskans. Under the proposal, beginning with the 1995-96 academic year, the academic calendars of the University would be adjusted to provide a holiday for students on this day but without a diminution in the total days of instruction; hence, the calendars would have to be further adjusted so that the observance as a holiday for students does not result in the loss of a day of instruction for the academic semester or term in which it falls. A lengthy discussion followed concerning the appropriate action and the most appropriate way to promulgate the action, A significant portion of the discussion focused on the development of an appropriate resolution to possibly include the names of various Alaskans who contributed to civil rights for Alaskans. Specific mention was made of the contributions of Elizabeth Peratrovich. After numerous motions, Regent Henri moved, seconded by Regent Williams, and passed unanimously that:

MOTION

"The Board of Regents postpones consideration of the motion brought forward by the Committee of the Whole and requests the administration to present at the December meeting a resolution establishing the third Monday of January to be observed by the University of Alaska as Alaska Civil Rights Day in honor of Martin Luther King, Jr., Elizabeth Peratrovich, and other with such resolution to be presented for the Board's consideration at its December 1994 meeting. This motion is effective September 30, 1994."

** Discussion of 1995 Legislative Agenda (Carried forward from Committee of the Whole)

Vice President Wendy Redman distributed a narrative describing the legislative intent concerning the University set forth in HB370, all of which were vetoed by the Governor. She also stated that the primary issues going forward fro the next session would be deferred maintenance, transfer of the management of UA endowment trust funds, and expanding the University of Alaska's land grant. Vice President Redman also mentioned other important legislative proposals that the University would be seeking this year, including the crafting of legislation which would extend to UA employees certain privacy protections that they do not presently enjoy. Vice President Redman concluded her report by noting that it is absolutely appropriate for the Board to begin to be very vocal about issues of public policy that have an impact on the overall state revenue.

VIII. Status Report on Program Assessment Process

President Komisar addressed three key areas of the program assessment process. He spoke initially about the major elements of the assessment process in the policy as approved the Board, especially that goals of the process, and its ability of the process to provide an accounting the University. The first major element is the identification of those University programs that would receive the greatest degree of analysis and scrutiny. After addressing the deadlines concerning this element, he moved to a discussion of the process of review itself with the summary of the various reviewing entities. The final element addressed is the presentation of the outcomes of the assessment to the Regents at the December meeting. The president commented that he expects the process to result a vision of what the University's next decade will look like and produce a much firmer outline of the University's purposes and priorities.

Turning to the goals of the process, he indicated that one category of goals are those the University can expect to achieve by December and the programs that it expects to have implemented during the 1995-96 year. During this period, long term decisions will be made giving the University direction. This will include organizational goals which will translate into refinements in the University's structure. He commented that the most important goal of all and the hardest to articulate and achieve will be a change in the culture of the institution, that is a different sense of the immediacy about the University's actions and acceptance of common identifying principles upon which all the University's actions are going to be based.

Turing to immediate goals, the president observed that this will include the identification of programs for discontinuation, reduction or enhancement. In December a number of personnel actions will be recommended and will be taken during December. Decisions as to what positions will not filled, that is using attrition to meet budget cutback in the University, as well as decisions on what positions will be filled in order to meet the immediate and long-term goals of the University. The effect of these decisions may mean taking steps in December to stop or contain the admission of students to academic programs that are slated for change.

Finally, as to the long term considerations, the president spoke of the need for program collaborations in the administrative and academic structures with attention to questions such as, "Who do we serve as a University?", "How do we serve them?", "Where in the state do we provide the service and through what mechanism?" and, "What will we continue to offer?"

"The Board of Regents appoints the Finance, Facilities and Land Management Committee to examine into and make recommendations regarding the proposed donation of 1,000 acres of land near Klukwan, possibly subject to an option to purchase by the Chilkat Indian Village. The Finance, Facilities and Land Management Committee will submit its recommendations by FAX to all Regents. If no Regent objects to the proposal by notification to the Office of Regents Affairs within 5 days, then the president or his designee is authorized to execute all documents necessary to complete the transaction. This motion is effective September 30, 1994."

** Butrovich Building Exterior Siding Removal

Regent Henri reported that this item was a result of an executive session discussion. Regent Henri moved, seconded by Regent Otterbacher, and passed unanimously that:

PASSED

"The Board of Regents authorizes the Chair of the Finance, Facilities and Land Management Committee to approve projects relating to the Butrovich Building's exterior siding removal including consultant selection and authorization for the University administration to bid and award construction projects. The administration shall brief the full Board of Regents on all actions taken at the Board of Regents meeting that follows such actions. This motion is effective September 30, 1994."

IX. President's and Chancellors' Status Reports

President Komisar reported on his meeting with Boris Yeltsin. Yeltsin's speech was about his visit to Boeing and his pleasure of being in the city of Seattle (being the first time a ruler from the former Soviet Union had ever come to that section of the world. He spoke about some of the things that Boeing and the Russians are doing together in Moscow such as a joint research center and thanked everyone for welcoming there. Spoke about the Clinton discussions on disarmament and some of the things that took place in Washington. Received a standing ovation then proceeded into his prepared speech which was about reduction in inflation rate in Russia, interest rates were down, and Russia is a country to do business with because of its stable government and environment and there's enormous market. He received a proclamation naming him an honorary citizen of the state of Washington and the city of Seattle.

UAA

Chancellor Gorsuch covered many items in his comments including: the upcoming tribute to Robert Atwood; the 33 percent increase in credit hour production and double the number of majors in the UAA School of Engineering and most significantly the graduates' pass rate of 90% on the standard Fundamentals of Engineering exam; and the bequest of Mary E. Carlson to establish a nursing scholarship program through the School of Nursing and Health Sciences; .

UAS

Chancellor Lind reported an increase in enrollment on all three UAS campuses; fundraising activities which went toward scholarships; the annual planting flowers drive; and Southeast Conference

UAF

Chancellor Wadlow announced that in lieu of UAF's regular written report to the Regents, she will be substituting updates on program assessment for on and off-campus constituencies that provide answers to the most frequently asked questions; the annual dinner for the 15 new national merit scholars which brings the total to 39 at UAF; the Nanook kick-off dinner; the formal agreement between Rasmuson Library and KUAC production facilities and expertise in the two areas to enhance UAF's ability in instruction and in distance delivery; the "Opening Doors To Opportunity" conference which was a collaborative effort sponsored in partnership with UAF, the City of Fairbanks, the Fairbanks Daily News Miner, the Fairbanks North Star Borough, The Tanana Chiefs, the University of Alaska Foundation, Society for Human Resources Management, Fairbanks Chapter; and the College of Fellows proposed project for campus beautification.

X. Administrative Status Reports

Vice President Rogers highlighted several items from the administrative report including the request for proposals for mineral exploration on University Investment Lands; the availability of lots for sale to the public in the University's Peregrine Heights Subdivision; the lease extension for the Fairbanks North Star Borough District;

Vice President Redman thanked Board of Regents President Gagnon for affirming the program assessment process. In addition to the incredible amount of work going into the process by faculty, staff and students, letting the process evolve was very important.

XI. President's and Regents' Comments

On behalf of the Governor and the State of Alaska, Regent Fate accepted the Alaska State Energy Efficiency Award for the president's home and spoke of her recent trip to Yakutsk and the importance of American Russian Center in the eyes of our nation and Russia.

Regent Breeze thanked Chancellor and Mr. Wadlow for the lovely dinner at their home on Thursday evening. She also expressed her appreciation to President Komisar and all those involved in the program assessment process for their hard work and reiterated the support of the Board members.

Regent Otterbacher invited all Regents to the Fall 1994 Student Leadership Conference on campus over the weekend.

Regent Stitham also expressed her thanks to Chancellor for the dinner in her home and commented on the excellent gathering of supporters of the University's community. She stated she was pleased to see the work being done relative to transfer of credit and the common admissions form. She commented on the committees that have been formed (SAC, Student Services, Vocational Education) and the enormous benefits that will come from these groups. Regent Stitham said she appreciated the work and commitment going into program assessment at every level of the University community and reiterated the Board's commitment to making sure the process has the integrity that will make it worth all the effort and investment.

Regent Ogg thanked Chancellor Wadlow for the dinner and sharing her home with the Regents. He also stated his support for the efforts of the administration during the program assessment process. He gave a brief report the Fisheries Task Force and some of its recommendations. Regent Ogg requested that the letter being drafted to Jim Ayers relative to the University's relationship and involvement with the Seward Sea Life Center be brought back to the Board for review prior to being sent. He concluded his comments by thanking President Gagnon for a great meeting.

Regent Henri announced that the Finance, Facilities and Land Management Committee would be meeting in Fairbanks in October. Regent Henri reflected on the Regents' discussion of the capital move and the adverse effect it would have on finances of the University of Alaska. He stated he felt the Board is losing an important opportunity to inform the people of Alaska of the Board's view and reiterated that he would very much like to see it said.

President Gagnon said she was glad many of the Regents took the time to thank all those involved in program assessment for their hard work. She in turn thanked all of the Board members for the time, attention, energy and care they give all of these issues and stated that it was inspiring.